Baxia Markets
August 04, 2021

Ethereum retraces after a magnificent performance

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ETHUSD had 12 excellent trading sessions where it managed to make more than 50%, that's correct, 50%.

The pair broke the strong resistance level found at the 23.6% Fibonacci retracement $2,332. We could see the price fall to its support level to gather more strength before making a breakout attempt at the next retracement.

The relative strength index entered an oversold status at 72%; traders reacted to this by closing their long positions, which has naturally pushed the price down almost 5% in the last two trading sessions. This pullback is expected and will allow the cryptocurrency to gather strength to make another attempt to break the resistance at $2,724, which has not been proven strong yet.


ETH August 3rd

The price trades slightly above the Ichimoku cloud, which is a good thing; however, if the price continues to fall, we will find market uncertainty and will likely see the price bounce for a while before it continues its trend.

The general trend is now upwards as the short and long-term moving averages crossed just four sessions ago. Our parabolic SAR supports this signal.

The Bollinger bands are broad; they are finally starting to move up, which suggest an uptrend; however, the price traded above the upper band implying that the price was relatively high, another reason why we see a temporary pullback


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